Yugi Muto, his friend Joey Wheeler, and other characters from the Yu-Gi-Oh! manga are sucked into a virtual game created by a mad scientist named Scott Irvine. He wants revenge against Seto Kaiba, the CEO of Kaiba Corporation, for firing him. The player has a choice between two scenarios: playing as either Yugi or Kaiba.
The main goal is to stop the emperor Heishin from taking over the world and face the creatures that stand in their way: the Egyptian gods Obelisk, Slifer, and Ra. Along the way, they must also stop Scott Irvine and overcome challenges to achieve freedom.
Yu-Gi-Oh!: The Falsebound Kingdom is a fighting game with elements of a real-time strategy game. The gameplay consists of navigating troops, battling imperial forces, and trying to emerge victorious to advance the storyline. Players can fortify captured towns and build armories and infirmaries to provide supplies and healing for their marshals.
The actual battles are handled in a Japanese-style turn-based RPG fashion, with characters exchanging blows until either the player-controlled party or the opponents are defeated.